As a leading investor in clean energy projects, Standard Bank was the first bank to close a project in the current round of the REIPP procurement process, with the remaining projects having until end July to reach financial close.
A total of four projects have been closed to date: the Sirius, Dyasons Klip 1 and Dyasons Klip 2 solar projects in the Northern Cape and the Riverbank Wind Power project in the former Ciskei. Collectively, these projects (detailed below) represent a combined investment of ZAR 6.6 billion in South Africa’s renewables sector and will add 258 megawatts of renewable energy to South Africa’s national grid.
Northern Cape Solar Projects
The three Northern Cape solar projects, being constructed by Norway’s Scatec Solar ASA, were among the first projects to reach financial close in this round of the REIPP process. The Debt facilities provided, including guarantees, accounted for just under ZAR 4.7 billion of the combined ZAR 5.6 billion project cost.
In addition to providing innovative funding structures, crowding in asset managers and capital markets, these projects were significant for Standard Bank in that they represented the first time that we have provided inflation-linked CPI debt to a renewable energy project . Once commissioned, Scatec will have a portfolio of six solar projects in South Africa.
Eastern Cape Wind Project
Commissioned by Riverbank Wind Power Pty Ltd, this project will add 33 megawatts to the national grid. Riverbank Wind Power Pty Ltd is a South African consortium comprising 60% Innowind, 22.5% Telagystix, 5% Uncedo Lwethu Winds of Change (RF) Pty Ltd and a 12.5% Riverbank Winds of Change BBBEE Co (RF) Ltd shareholding.
As well as being the first project to reach financial close under the fourth round of the REIPP procurement process, this project is also significant in being one of a few wind projects located in a former homeland.
Beyond the impact of a ZAR 1.03 billion investment in an economically marginalised region of South Africa, the Riverbank Wind Power project demonstrates how rural communities can be key participants and benefit the broader economy, both as suppliers of energy and attractive destinations for investment.
The leading shareholder, Innowind, supported by its French parent company, EDF, represents the growth of a domestic renewables capability that Standard Bank, as mandated lead arranger on the transaction, is particularly proud to support.
Changing South Africa’s energy landscape
The Integrated Resource Plan, which is expected to be tabled in Parliament by mid-August, will set the path for the future energy mix in South Africa. Not only will this ensure the diversification of our energy supply to include renewable energy sources, it will provide South Africans with sustainable, secure and affordable sources of energy for the future.
Standard Bank’s involvement in these projects highlights our commitment to the renewable energy sector. Our aim is to diversify the energy mix and investments, working with our clients and partners to build a sustainable, affordable and long-term yield-generating energy ecosystem with the potential to drive growth and prosperity for generations to come.